Daimler and BMW are considering a share swap to boost cooperation according to a report in business magazine Der Spiegel.
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The report said that each firm would take a 7% stake in the other, the report said.
Der Spiegel also said that the Quandt family, who own 46% of BMW, oppose cross-ownership fearing that Daimler would mount a full takeover of BMW.
The German government has been informally approached to find out whether it would overrule any opposition to cross-ownership from antritrust authorities, the magazine said.
The report added that Daimler and BMW will shortly announce details of a proposed cooperation for purchasing components.

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